Analysts: Sony posts record losses with PS3 |
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Bloomberg reports that Sony has hit record losses during the last six months due to the sub-par market performance of its highly-touted PlayStation 3 game console.Analysts from 11 separate firms estimate that the company could have lost as much as US$ 630 million in the fourth quarter of last year alone. This means that even if the electronics giant is profiting from every division except gaming, it falls to a deficit because of the huge losses posted.
That means that even if Sony is making a lot of money from its cyber-shot digital cameras, Bravia TV sets and movies such as big-screen monster "Spider-Man 3," it still faces an uphill climb. The PlayStation 3 is currently ranked at last place in game console sales behind Microsoft Corp's Xbox 360 and Nintendo's Wii.
Analysts point to market delays, high price, scarcity of good content and Blu-ray losses as the main factors why the PS3 isn't even close to breaking even. In fact, other sources say that the company actually loses as much as $250 for every PS3 sold due to the high cost of production.
To date, the Nintendo Wii is outselling the PS3 by a two to one ratio. The Wii sold more than a million units in the US while the PS3 did a little over 500,000. The Xbox 360, which still leads the market in overall sales, has sold more than 700,000 units.
For her part, analyst Hitoshi Kuriyama of Merill Lynch Japan Securities says that there's bound to be a price cut for the PS3 sooner or later. She predicts a 20 percent mark-down in retail rates, which translates into the PS3 selling at around US$ 480 from the initial listing of about US$600. For the complete figure of the Bloomberg report, follow the "Read" link provided below.
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Comments [refresh]
the PS3 is an investment made by Sony... and even they have admitted that they will lose money on it but will be good for them in the long run...
i won't pretend to be a financial analyst (as most fanboys will, please see below comments) but $630 million for a quarter is big...
some people might worry that if Sony keeps losing money that they might stop support on the PS3... Well as I said it is an investment and the only way to make money in the future is to stick with it... PS3 holds the Playstation Franchise as well as Blu Ray it it's success... So this is Sony's ticket to next gen success...
i'd like to see the final numbers though and not the projections of 11 analysts... let's see how much of a hole Sony has to dig itself out of...
me?? i'm happy with my Bravia and PS3...
you guys want to read the article again, then change the way you word things?? It's like high school engrish around here.
They say
"Sony sold 501,000 PlayStation 3 consoles in the U.S. from January to March, compared with Wii sales of 1.03 million, according to market researcher NPD Group Inc., based in Port Washington, New York. Microsoft sold 721,000 Xbox 360 players. "
And you edit that down to say
"The Wii sold more than a million units in the US while the PS3 did a little over 500,000. The Xbox 360, which still leads the market in overall sales, has sold more than 700,000 units."
Which is only a LITTLE misleading.. Do some homework.
It's also from a bloomberg analyst with a VERY small track record. In fact, google their email, and you only get 7 hits... Rookie.
And then you throw in the PS3 hating QJ remarks trying to vilify sony again and again.
PS3 the new neo geo. History does ofetn repeat itself..
this site sucks more everyday!
the 1.03 million wii's, 721,000 360's and 501,000 PS3's ARE FROM JANUARY to MARCH SALES!!!! So before the defensive sony fanboy in you kicks in the article is right. The 360 is leading the market with units sold thanks to the year advantage. So nothing posted here is "MISLEADING" its just the sony fanboy retardation in you.......
PS2 still outsells the xbox360. Ans PS2 and PS3 together outsell the Wii.
you are a queer
hey mr i think, the leader is the Nintendo DS, second is the Playstation 2, 3rd is the Nintendo Wii. xbox 360 is not the leader, its just slightly above the PS3 due to many considerable factors BUT future forecasts from almost all credible analysts says PS3 has a great future after it endure this conspirated trashing because the PS3 has not just potential but REAL great hardware. great softwares coming soon too.
and kudos to mr common sense for being unbiased and setting facts right.
how about adding it all, Wii plus DS combined outsells ps2, ps3, psp combined. but ps2 alone outsells both xbox and xbox 360 combined. this is efficient facts to date.
hahahaha i love how you are trying to make your self feel better by saying "well sony has the ps2 so if you include those sales then sony has beaten the xbox!" hahahaha how low do you have to go for satisfaction?
Of course they don't plan to make an immediate profit, that's impossible. I heard the cell processor alone cost nearly a billion dollars to develop. But they at least need some impressive sales! That is how their plan turned into a disaster, as even Japan just isn't buying PS3s as expected.
The PS3's problems are all the result of poor planing, a huge ego, and putting somebody in charge with almost no business sense, Ken Kutaragi.
After the success of the PS2, really all sony needed to do was the same thing, release a moderately priced console, nothing really ground breaking, with great exclusive games. A better online was of course needed than the nearly nonexistant PS2 one, which they did barely manage, although 600,000 members isn't very impressive especially for being free.
They should have made it launch near the same time as the 360 with good development tools. It should have had a traditional 2 or 3 core processor that's cheap and easy to make, standard hard drive, DVD9 disc drive, standard HDMI would be nice, and no bluetooth crap to reduce costs. That's all that would have been needed in the PS3. There you go, another 100+ million seller. Even with nearly identical specs to the 360, the name alone could have made it a success. They should have focused on making it a pure game system like the first two, and if it can do other things then that's just an added bonus. I would have bought one without question.
I may buy playstations again when they get their s*it in order and they decide to make game systems again. When they get greedy and give gamers the shaft to support their dumb ass blu gay format while forgetting gamers are the reason playstation was successful in the first place, I want nothing to do with sony. Meanwhile, I enjoy watching their financial problems resulting from their greed.
Sony still has the most marketshare with the ps2, ps3 and psp....xbox fans can lie to themselves if they wish. When there is no more ps2....the ps3 will be the main focus...get ready..when blu ray wins this fall...get ready.....and when more hdtvs are in families homes..get ready!!! The ps3 is future proof...microsoft is running around in circles trying to please everyone...Sony is the solid rock of this generation.
Well the PS2 is a value at $130 and has a good game selection. The PS2's games are more fun than the PS3's games in my opinion. The PS3 is a poor value at $600 with 2 games with the only difference being HD graphics. Most people are poor nowadays. The economy is crap. A lot of people don't even have HD TVs yet.
Quit falling back on the "but the PS2 sells x many a month" argument. Yeah I loved the PS2 too. It's time to move on.
220,000 more XBOX 360s sold than PS3s from January to March in the US is just slightly more?
Fanboy excuses are funny.
remember what i told you about stupid fanboys pretending to be experts????
this guy above me is a vergy good example of stupid people pretending like they matter.
You think sony did the right thing?
You're funny!
Funny in a very sad, pathetic kinda way.